This should have big impact going forward Article on Obama putting together a group for some new regulations on natural gas development and hydraulic fracturing. This should hopefully help us sooner then later. All the investors who have abandoned frack companies . When Obama comes out with some Regulations , not a ban on fracking .
Investors will realize:
Fracking isn't going away .
Increase push for natural gas use will put a bottom in the price of natural gas slide .
In order for North America to push forward with Nat Gas as a main source of energy. Fracking is a must to develop the recourse. Which can be done enviro friendly.
Then when it comes to TCW the shorts will be squirming to get out on the knowledge that a valuation will be rising. As investors jump back in . Fundamentals and technicals are about to both be positve for the stock as it holds support near its 52 week low . Investors have sold off energy sector as if Oil and nat gas is no longer going to be a main source of energy consumption going forward . Investors are acting as if its $40/barrel oil not the last year of $100/barrel . The market has been pricing in these stocks at $85/oil for a long time and oil has not dropped . So most companies have had ample time to edge in future production at $100 oil. Most companies have shifted over to Oil as a main source of income a year ago well before the drop in price and hedges coming off.
Western Canada is short on Frack crews and TCW has 25% more HP coming online this year.
TCW valuations are the cheapest they have ever been with YOY 20% growth. Out of 18 Analysts they have a mean target of $25 an 80% increase from here . On just about all historical metrics for this stock its trading at about a 75% discount on almost all levels
Comparing numbers now to premarket crash of 2008 for TCW when pressure pumping was only in its infancy.
Net Margins 2008 13% 2011 15%
P/E 2008 15.4 2011 8.7 (Current P/E of 6.0) 5year average of 26
Gross profit 2008 167m 2011 590m
P/sales 5 year avg. 2.1 Current 0.9
They have increased revenue in the last 5 years by 3.5x . But the street is acting as if the company is going to go the way of Rim . So valuation the market is pricing in revenue from Cementing , coil tubing , well stimulation . But you are currently getting the revenue of fracking for free. 5 years ago the SP was at $25 . Its unreal that this stock is so cheap .
https://thehill.com/blogs/e2-wire/e2-wire/221429-industry-groups-applaud-obamas-natural-gas-executive-order